1. (Bond valuation) Michael Motors’ bonds have 10 years remaining to maturity. Interest is paid annually‚ the bonds have a $1000 par value and the coupon interest rate is 8 percent. The bonds have a yield to maturity of 9 percent. What is the current market price of these bonds? Cash flow = 8% of 1‚000 = 80 YTM or interest rate n = 10 i = 9(%) PMT = 80 FV = 1000 PV = solve PV=935.82 2. (Valuation a preferred stock) Susie’s Pet Supplies issued preferred stock with a state dividend of
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Organizational Theory and Design Case Study Analysis Rondell Data Corporation Case Analysis Abstract: The analysis of Rondell Data Corporation situation and discrepancies that were experienced throughout the company life cycle will help understanding the theory and design of organizations . By exploring the background of the problem‚ organization ’s functioning‚ the impact of organizational culture on the strategy and success of the company and problem identification‚ recommendations
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AN EMPIRICAL TEST AND EXTENSION OF THE BARTLETT AND GHOSHAL TYPOLOGY OF MULTINATIONAL COMPANIES Anne-Wil Harzing Version October 1999 A revised version of this paper appeared in Journal of International Business Studies‚ vol 31 (2000)‚ no. 1‚ pp. 101-120. Copyright © 1999 Anne-Wil Harzing. All rights reserved. Do not quote or cite without permission from the author. Dr. Anne-Wil Harzing University of Melbourne Department of Management Faculty of Economics & Commerce Parkville
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2. What are the chief elements of Costco’s strategy? Chief elements of Costco’s strategy were low prices‚ limited selection‚ and a treasure-hunt shopping environment. The ultra-low pricing strategy includes a mark-up capped at 14% and Kirkland‚ a Costco brand designed to be of equal or better quality than national brands. Product Selection is limited to 4‚000 items within a wide variety of categories. Costco does however include ancillary businesses to increase member alternatives. The loss of
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TRANSNATIONAL CORPORATIONS Economic integration as a hallmark of globalization • FDI increase • Increase of international currency transactions • Growth of marginal courtiers Global blessing or contagious disease? • Asian crisis Capitalism not yet fully globalized? • Core of the economy –30 countries: Asian Pacific‚ Western Europe‚ North America • Geopolitical changes: Soviet Union demise • Unequal development of technology Global labor‚ multinational
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Throughout this course‚ we were told to pick a company. The company I chose was Kohl’s Corporation. I picked this company because I am loyal customer of Kohl’s and have more knowledge when it comes to the particular company. Kohl’s Corporation has variety of merchandise from apparel to home goods and more. There are a total of 1‚164 stores in 49 states and Kohl’s also has their online store for those who don’t have a store near them. Kohl’s is big on their sportswear‚ and home good items. The company
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Oracle Systems Corporation Summary Since its formation in California in June 1977‚ Oracle Systems Corporation has grown rapidly to become the world’s largest supplier of database management software. It also offers maintenance‚ consulting‚ training‚ and systems integration services and it is the leader in its industry. But currently‚ its way of revenue recognition has been debated. Under Oracle’s current set of accounting rules‚ Oracle can recognize any revenue they believe will be shipped within
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ABB is a multinational corporation headquartered in Zurich‚ Switzerland‚ operating in robotic and mainly in the power and automation technology areas. ABB Sea Brown Boveria was formed in 1988 from the merger of Asea AB (Sweden) and BBC Brown Boveria (Switzerland). It ranked 143rd in the Forbes Ranking (2010). ABB is one of the largest engineering companies as well as one of the largest conglomerates in the world. ABB has operations in around 100 countries‚ with approximately 145‚000 employees in
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FBE 421 Marriott Corporation ------------------------------------------------- Introduction Founded in 1927‚ Marriott Corporation has become one of the leading food service companies in the United States. As of 1987‚ Marriott recorded a profit of $233 million on sales of $6.5 billion and retained a high sales growth rate of 24%. Marriott runs on three major lines of business lodging‚ contract services‚ and restaurants. Lodging division which includes 361 hotels generated 41% of 1987 sales
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Marriott Corporation: The Cost of Capital (Abridged) 1. How does Marriott use its estimate of cost of capital? Does this make sense? Marriot use cost of capital as the hurdle rate (minimum rate of return required to accept the project) to discount future cash flows for the investment projects of the three lines of business (Lodging‚ Contract Services and Restaurants). They use this rate to calculate NPV and net present value over cost to decide for the profit rate. Since cost of the project
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